Video describing the new process
Questions and Answers
The Electronic Check Clearing Law, which was passed by the Knesset in February 2016, enables the transition from physical check clearing to electronic clearing. In the existing process, each check must be physically sent from the bank where payment is being collected to the bank on which the check is drawn in order to complete the clearing process.
The Electronic Check Clearing Law has very significant ramifications on the clearing process. The physical checks will be stopped (truncated) at the bank where the check is presented for payment, where the checks will be photographed, and image files of the checks will be sent to the paying bank. The physical checks will no longer need to be kept for years as they are today.
This process makes it possible for bank customers to deposit checks without physically coming to the branch, and to increase the use of advanced electronic services, through the banking applications offered to them. Mobile deposit of checks also reduces the cost of depositing a check by up to 75 percent (cost of depositing a check through a customer-executed transaction compared with through a teller-executed transaction).